Lifetime Mortgages, Home Reversion, and General Equity Release Advice in Surrey
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Equity release in Surrey is increasing in popularity, but there are still many people who aren’t aware of the benefits of releasing equity, particularly in such a wealthy area.
If you have never heard of equity release in Surrey before, it’s time to get to know this exciting process and help you understand the features and risks involved.
On the other hand, if you already know a great deal about Surrey equity release, do not hesitate to contact us and find out how you can get started with an equity release plan that suits your individual situation.
Please call our 24-Hour Helpline: 0330 058 1579
According to Rightmove, the average house price in Surrey in 2021 was £627,799, which is 4% higher than it was the previous year (1). The majority of houses sold are detached homes, with the second most common being semi-detached.
Property is becoming more and more valuable in Surrey, which means many pensioners have watched their property increase in value a significant amount since they first bought it.
What can you do with this information? Well, if you are a pensioner in this situation, you don’t have to sit around while the value of your property increases. Instead, you can directly benefit from this rise in value by taking out money secured against your property.
Either through taking out a mortgage or selling a share of your home, you could receive a loan that will not be owed until you pass away or move into long-term care.
When this occurs, the money from your property sale will cover the loan. There are risks involved with this, so we will give you all the information you need to ensure the process is safe, but for many people, equity release has been life-changing.
Please call our 24-Hour Helpline: 0330 058 1579
It is the norm to spend your life earning money and then pass this on to your children when you pass away.
Though many people are still fond of this idea, wanting to ensure their children and grandchildren are well looked after, times are changing and we are beginning to see how important it is to live for yourself and enjoy your retirement.
That’s not to say that people who take out equity leave nothing to their families in favour of spending all of their money. However, it does mean that if they have been struggling financially, they may decide enough is enough and they want some extra income to enjoy in retirement.
This will most likely reduce the amount of money their family will inherit, but it will by no means leave their loved ones with nothing.
When you have the extra money in retirement, you are spoilt for choice with what you can spend it on. Some people need to spend it on practical expenses such as bills, otherwise, their quality of life would be affected.
However, others are able to use their money for home improvements, family holidays, and cars. Why not spend some money on yourself in your later years when you’ve spent years working for it?
Please call our 24-Hour Helpline: 0330 058 1579
We cannot ignore that there are some downsides to unlocking the equity in your home.
Neglecting to mention this would be misleading, and we want to make sure you are in the position to make a sensible decision about what to do with your property.
Firstly, some people do not like the idea of later life lending as it feels like a constant burden, even if they know it doesn’t have to be paid back until they have passed away.
This is especially concerning for them if they want to leave money to their loved ones, as they may not want to do anything that reduces the amount their beneficiaries could inherit.
Secondly, other expenses involved in equity release in Surrey may deter people from starting the process. There are solicitor’s fees, administration costs, valuation fees, and other expenses that you must pay for if you are looking to release equity.
Not only is this financially taxing, but it can also be time-consuming, which is particularly stressful if you are still working at the time of your enquiry.
Finally, though there are many different equity release options available in Surrey, there are different conditions for each one which means you may not necessarily find one that is perfect for you.
For example, you may like the idea of a voluntary repayment plan as it appears you can pay back the loan whenever you want to.
However, there are still limits to this, as you usually have to wait a certain amount of time before you can make repayments during your lifetime, and the loan may not be fully payable until the end of the scheme.
If you decide that accessing the money that is tied up in your home is not right for you, we will help you to consider other options, such as downsizing.
If you move to a smaller house, you could be spending less money on your mortgage and bills, putting you in a better financial situation.
Please call our 24-Hour Helpline: 0330 058 1579
If you discuss equity release with an impartial adviser, the first option they will usually mention is a lifetime mortgage.
As the name suggests, this involves getting a mortgage that lasts your whole life, and that you do not have to pay back until you die or go into long-term care.
With this scheme, you continue to retain full ownership of your home, and you are usually expected to stay in your home in Surrey until the completion of the scheme.
However, sometimes there is the possibility to move home if you request this, but you would have to find a property that was approved by the lender. Most often, this property would be the type of home the organisation would offer to a new equity release client in Surrey.
Another option is to sell a portion of your home, or the entirety of your home, to an equity release provider. In this scenario, you are giving up your status as homeowner, but you get to live in your property without paying rent.
As well as this, you will be given a tax-free lump sum of cash to spend on anything of your choosing.
Please call our 24-Hour Helpline: 0330 058 1579
To get a clear idea of which equity release plans would be the best for you, we encourage you to reach out to us so we can ask all the right questions.
For now, we’re going to present you with various scenarios and decide which plan would be the most suitable for each one.
In this scenario, the obvious plan for the consumer is the buy-to-let plan, which allows consumers to take out a loan to purchase a property that they will then rent out and collect income from. With this arrangement, the interest rate is fixed. The money can be paid all at once or in instalments.
This client would do well with an interest-only scheme, as this would require them to pay back some or all of the interest on the loan each month. The total amount owed at the end of the scheme would be reduced as interest would not be included.
In this situation, we would advise a drawdown plan, as it is a combination of the two options. At first, the client would receive a lump sum of cash, and after this, they could withdraw extra money whenever they wanted to, or request that monthly payments were paid into their bank account.
Please call our 24-Hour Helpline: 0330 058 1579
Many people are concerned about whether they can take out equity if they have a power of attorney (POA) in place.
The answer is usually yes, and in fact, some arrangements allow you to implement a POA for the first time as it is important to have someone else to rely on for your finances in case you end up deteriorating in your later years.
Another worry many potential consumers based in the UK have is whether they will be able to leave money to their family. We have briefly covered this, but we want to reassure you that it is possible to prioritise inheritance with equity release.
You must mention this to the adviser to ensure you are offered a plan that takes this into account, i.e. a plan with inheritance protection, such as home reversion plans.
Please also be aware that inheritance tax is not applied to money released from equity, so your family will not have to worry about this if you pass on some money to them.
Please call our 24-Hour Helpline: 0330 058 1579
If you have an outstanding mortgage, you can still take out a lifetime mortgage, but you need to speak to an unbiased adviser first as some mortgage advisers have specific conditions surrounding this.
Usually, you can use the money from the equity loan to pay off your traditional mortgage.
If you have a home reversion, interest will not be on your radar as you will receive tax-free cash. However, with a lifetime mortgage, you will need to consider the different interest rates on different plans.
Generally, you will pay less interest if you take out money as and when you need it, as interest will only be charged on the money you withdraw. This is applicable to drawdown plans, as opposed to lump sum plans, where you receive the entire loan in one go.
Please call our 24-Hour Helpline: 0330 058 1579
We have touched on the idea of releasing equity for improvements in your home, but we want to talk about this more as many of our clients benefit from this. There are many ways you can use home improvement to facilitate you in your later years.
Firstly, you may want to change some rooms around, particularly if you have been left with extra rooms as your children have moved out.
You could make the most of your space by extending important rooms, such as the kitchen and living room, or you could use a room for a different purpose, such as converting a bedroom into a reading room.
Secondly, it is wise to consider renovating your home to make it more accessible, such as adding a stairgate, a shower chair, and rearranging the furniture so that it is easy to get around.
This can be a better option to moving to an accessible home, as you may struggle to find a property that fits your criteria, and you don’t want to settle on a home that you don’t like simply because it is more accessible.
If you are adding equipment to facilitate a disability, be aware that you could be entitled to a higher loan and various other benefits with an enhanced/ill-health plan, so get in touch to talk about the details of this.
Please call our 24-Hour Helpline: 0330 058 1579
Though our location pages are extremely helpful, you may want to learn more about equity release in general, and not just in Surrey.
If this is the case, please have a look at other areas of our website that cover the benefits and disadvantages of equity release, and show you how to get started.
You could head to our help centre first, where we answer your questions in a clear, detailed way, then go to the plans page, where you can see all the different plans that are available in Surrey as well as the UK in general.
It is not a good idea to take out equity without first consulting a highly experienced adviser who is regulated by the financial conduct and the Equity Release Council (ERC). This can be either an independent financial adviser, a firm, or a charity.
Sometimes there is a fee to pay to get professional advice, but do your research as many advisers in Surrey offer free services to interested customers.
We have a free equity release calculator on our site that will calculate the amount of money you could release from your home after you input your type of property, value of property, and your age.
We do not ask for any personal details so please don’t worry about being contacted after you have used the equity release calculator. What’s more, your data is protected so it is extremely safe to use.
Please call our 24-Hour Helpline: 0330 058 1579
If this article has left you intrigued to find out more about releasing equity, please call us today on our company number, 0330 058 1579, or ask us to give you a call.
All of our advisers are incredibly knowledgeable and friendly, so you will be in good hands. They offer independent advice to clients which will be a step up from the general information provided here.
We encourage you to be open with our helpline staff about how much you know about equity release in Surrey, as this will help them to do their job well.
There is no shame in being unsure about the ins and outs of taking out equity in Surrey, as our advisers can tell you everything you need to know and help you choose the right plan for you.
Whether you live in Woking, Guildford, Reigate, Frimley, or another area of Surrey, if you are over 55 and your property is worth over £70,000, you are eligible for equity release.
Do not hesitate to get started on your journey, as you could be accessing a valuable loan in no time.
We also help consumers in other areas of the UK, including the nearby counties of Sussex, Kent and Greater London, but also areas that are further afield. Have a look at our home page to see a full list of the areas we work in.
We hope we have explained everything you have been wanting to know, but again, we can explain in much more detail if you contact us.
[1] House Prices in Surrey https://www.rightmove.co.uk/house-prices/surrey.html
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